Which of the following is a use of a currency swap?
A. To exchange an investment in one currency for an investment in another currency
B. To exchange borrowing in one currency for borrowings in another currency
C. To take advantage situations where the tax rates in two countries are different
D. All of the above
D
A currency swap can be used for any of A, B, and C.
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The effect of making the slope of a line chart appear steeper can be created by:
a. Stretching the vertical axis. b. Shrinking the horizontal axis. c. Stretching the horizontal axis. d. Both a and b
The yield curve is:
A) inverted when short-term rates are higher than long-term rates. B) normal when it slopes upward to the right. C) a plot of interest rates versus term, also called the term structure of interest rates. D) All of the above